News: Meet Affordable Housing Quota Or Face Punitive Action

Sep 4, 2019

Developers who failed to meet the affordable housing quota set by the Selangor state government could now face punitive action.

The state government explained that any development projects approved by its local councils, such as the Petaling Jaya City Council or the Shah Alam City Council, are mandated to prioritise the construction of affordable housing units.

This means that the affordable units should be built during the first phase of development or concurrently with other housing units. Such condition was imposed on developers during the local government’s issuance of development order.

“Failure to comply could result in punitive action by the respective local government, including the suspension of the development order, building plan approval and also the issuance of the certificate of fitness,” said the state government in an email response to questions from The Edge Financial Daily.

When asked if the punitive action was a new measure, the Selangor state government noted that while the option has always been available, it was considered as an action of last resort.

“If the developer is awaiting approval for a new project, we will hold their application until they have settled their [affordable housing] obligations for current property developments,” it said.

The state has a fixed ratio of 15% to 40% of each development to be comprised of affordable housing, depending on the size of development land and the locality, with each unit priced at below RM250,000.